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Long-Term Treasurys Too Risky?

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  • Description

    Kaltbaum Capital Management CEO Gary Kaltbaum gives his outlook for the bond market.

  • Duration 2:46
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-- much Lawrence.

So the yield on the ten year treasury is falling to a new record low -- -- concerns out of Greece Spanish yields flying sky high as well.

This is middle of the US ten year down to one point 43%.

And our next guest says -- treasuries are the safest place to hide right now.

Longer term while they are full of rates theory cop on the cop on capital management joins us now -- -- -- -- -- thanks a government official when you look at the -- US yields is a situation in Europe right now so dire that investors are just choosing to ignore.

The budget deficit crisis going on here in the US.

-- I just have you ever I think you have one big gigantic get out of risk.

And go with the places that are supposedly safe.

And that's why -- -- a stronger dollar and that's why you're seeing yields lower here but I I I really look part of this is the Fed bought 60%.

Bubble of last year's treasury bonds that's what's helping -- out also so it's kinda feeding on itself but I got to tell you.

Anybody who's investing right now and getting one point 41 point 5% on ten years as far as I'm concerned longer term -- And I think there's gonna be have to pay if they the -- to keep it for ten years I'll tell you I mean how safe is the US especially if you look at the macro picture.

GDP second quarter coming -- expected to beam what is the consensus -- one point 4%.

Yep but what would look which is muddling through why don't think what a lot of people called depression a lot of people called recession I don't think where there will muddling through.

The bigger issue -- going forward is.

The Fed keeps.

Printing money right right to put more deficits and the -- with the interest rates as I don't think interest rates were in line with how much debt we have.

And again if we were -- real world right now I think interest rates will be much higher.

There's a thing though the Federal Reserve Chairman just last -- that he does expect interest rates to normal highs but.

That's not gonna happen.

Anytime soon so do you expect an -- -- -- catalyst going to deed and and if you expect it at a return to normal or whatever an interest rates.

Is it going to be like a sharp and painful catalyst.

I don't know if you need a catalyst just remember.

Our markets are much bigger then people.

In the long run in the short run obviously not because the Fed has been able to control interest rates and keep them down.

But I have this line that I keep repeating and repeating it for a while.

If they don't stop eventually the market's gonna stop them debt kills them -- sit here close the sixteen trillion.

On top of what's to come in the next few years.

I don't know what day in what catalyst that's going to be.

But in -- real world when people go in and -- money they wanna decent return based on the situation at hand.

And I think we're just not the real world just yet.

Okay Gary thank you so much -- -- on appreciate your insights.

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